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Hai-Inkam Bhd (HIB) provided the following information related to the liability of the company on 31 December 2022: 1. The company reports a note payable
Hai-Inkam Bhd (HIB) provided the following information related to the liability of the company on 31 December 2022: 1. The company reports a note payable amounting to RM45,000, which is due on 31 August 2023. The company has come into agreement with the creditor on refinancing the debt, which is due on 15 January 2024 . The related agreement was signed on 1 January 2023. 2. The company engaged a bank loan in July 2022 amounting to RM600,000 with a monthly instalment of RM5,000 for 10 years. The first payment started on 1 August 2022 and the company had no payment in arrears. 3. Accounts payable were reported at a total of RM47,500. On 31 December 2022, the company received goods purchased on credit amounting to RM13,900. This purchase was not recorded anywhere in the book. 4. During the month of December 2022, the company received cash payments totalling RM15,000 for pre-ordered goods from customers and recorded as unearned revenue. However, the company only managed to deliver half of the demand as on 31 December 2022. 5. 31 December 2022 falls on Saturday. Therefore, the salary amounting to RM22,000 will only be paid on Monday, 2 January 2023. 6. The company also had an unpaid utility bill of RM690. REQUIRED: (a) Prepare a partial Statement of Financial Position as at 31 December 2022 for Hai-Inkam Bhd. (b) Refer to information no (1) above related to the note payable. Assume that the agreement on the debt refinancing was signed on 30 December 2022. (i) Explain how HPB reports the liability; and (ii) Provide THREE (3) conditions to be fulfilled to justify your answer in (b)(i) (c) Assume the Board of Directors on 15 March 2022, announced a cash dividend totalling RM120,000 to the shareholders. The payment will only be made on 1 July 2022. Prepare journal entries to record the dividends on the announcement and payment dates
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